AP Photo/Jacquelyn Martin, Pool
- Dividends could be larger if a plan to boost taxes on stock buybacks becomes law, PepsiCo's CFO told CNBC.
- President Biden called for quadrupling the tax on buybacks during his State of the Union remarks Tuesday.
- That comes as oil companies and tech giants have approved massive repurchase plans.
Expect more cash to go toward dividends if proposals to boost taxes on stock buybacks become law, according to PepsiCo's chief financial officer Hugh Johnston.
He told CNBC on Thursday that while he didn't "understand why taxing buybacks is a good idea," such policies are made in Washington, DC.